Australian Dollar Test of Support is a Big Deal
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AUDUSD – Retail traders remain net-long the Australian Dollar and have remained so since the pair crossed below the $0.80 mark in May. As long as that remains the case we see little reason to shift from our long-standing contrarian bearish trading bias.
It will be critical to watch the Australian Dollar’s reaction to key near-term support; a major breakdown remains somewhat unlikely. Yet we see little reason to buy the AUD/USD given extremely one-sided crowd sentiment.
See next currency section:NZDUSD - New Zealand Dollar Outlook Remains Negative
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.